Washington franchisor bonds.
$775 flat.
When the Washington Securities Division conditions a franchise registration on financial protection, it can accept a $100,000 surety bond in lieu of impounding your initial franchise fees, under the Franchise Investment Protection Act. Ours is $775 flat, issued instantly, with one soft credit pull.
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How much does a Washington franchisor bond cost?
$775 at the $100,000 amount, the same for every applicant.
Three steps to registered.
Your franchise registration is waiting on this bond. Here is the entire process — no broker phone tag:
Apply once, online
Company details, ownership, effective date. That is the application — the only extra step is a one-time consent to a soft credit pull.
Approved
Most are approved as soon as you apply. One soft credit pull, never a hard inquiry, and it never affects your score. If it needs a second look, one to two business days at most.
E-sign & file with the Securities Division
Pay online and receive the executed bond, ready to submit with your franchise registration. Wet-ink originals mailed whenever the Division insists.
What it is and who needs it.
What the franchisor bond actually guarantees
Washington regulates franchise offerings under the Franchise Investment Protection Act (RCW 19.100), administered by the Department of Financial Institutions, Securities Division. A franchisor must register before offering or selling a franchise in the state.
When a registrant’s financial condition warrants protection for franchisees’ initial fees, the Division can require an impound of initial franchise fees — and it will accept a $100,000 surety bond, a guarantee of performance from a parent, or a fee-deferral arrangement in lieu of that impound. The bond protects franchisees if the franchisor fails to perform its pre-opening obligations.
It is a three-party guarantee: you (the franchisor), the surety, and the State for the benefit of your franchisees. It is not insurance for you — if the surety pays a franchisee claim, you repay the surety. The $100,000 figure is the standard amount the Division names for this purpose.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the $100,000 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose; a longer term is the same price per year, chosen at checkout.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
E-sign & file with the Securities Division. Pay online and receive the executed bond, ready to submit with your franchise registration. Wet-ink originals mailed whenever the Division insists.
What sets the price
The premium is fixed at $775 at the $100,000 amount for every applicant: the carrier’s rate book prices this bond by the form, not by your credit or your business profile.
One soft credit pull, never a hard inquiry, and it never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued instantly.
These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is issued when you pay.
Start the application →Common questions.
Other Washington bonds.
Been told you need a different amount?
Price and requirements checked on the carrier’s application, . Page updated .
The Securities Division is waiting on one document.
$775 flat, short application, bond issued when you pay. Free until issued.